Russia raises 2027 military spending by 27%, budget documents show
The plan would lift total military outlays to 50 trillion rubles over three years and rely on higher taxes and borrowing to cover the gap.
- On Monday, Russian government documents revealed a plan to spend 17.1 trillion rubles on defense in 2027, a 27% increase from the 13.5 trillion rubles originally budgeted, marking the highest military expenditure since the 2022 invasion.
- Total defense spending will reach 50 trillion rubles over the next three years, reflecting sustained economic pivot toward military production that ensures defense outlays remain the primary driver of state fiscal policy through 2027.
- Officials doubled the 2026 deficit forecast to 3.2% of GDP, while new windfall taxes on metals and mining are expected to generate 200 billion rubles annually to help cover rising war costs.
- Social programs, education, and healthcare face significant funding cuts in 2027, with Reuters reporting that anti-cancer programs face a 97% reduction, demonstrating the state's prioritization of wartime operations over domestic civilian needs.
- Ukrainian intelligence reports indicate Russia is preparing to mobilize 300,000 personnel annually in 2026 and 2027, suggesting the Kremlin anticipates remaining at war with Ukraine for the foreseeable future.
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Russia will spend around SEK 2,100 billion on the military next year.
Analysis: Russia's financial reserves are now being used up on President Vladimir Putin's war in Ukraine. The new budget law shows that Russians will pay a higher price again next year. Purchasing power is being transferred to the state - and civil society is being starved. The money printing press has gone into overtime.
Russia plans to spend around 178 billion euros on military spending in 2027. "This means that Putin is obviously not interested in fast negotiations, but wants to continue the war," says Russia expert Gerhard Mangott.
Russia cuts welfare, education and healthcare budget as war spending hits new high
Russia's financial burden is not limited to military spending. The government is also spending more on servicing its debt as high interest rates increase borrowing costs. Debt-servicing costs in 2027 are expected to be 21.6% higher than originally planned. They are projected to account for 9.4% of total government spending next year and could rise further to 10.6% by 2029.
Moscow intends to spend some $592 billion on defence over the next three years, which experts attribute to its desire to win Ukraine away from the pressures of war on Russian citizens.
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- 34% of the sources lean Left, 33% of the sources are Center
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